Stocks rise but turnover hits 3-month low

Dhaka stocks increased on Tuesday but the turnover at Dhaka Stock Exchange hit its lowest in nearly three months as a section of investors especially institutional ones went for bargain hunting in the bearish market while most of the investors remained on the sidelines.
DSEX, the key index of DSE, advanced by 0.47 per cent, or 26.39 points, to close at 5,631.29 points on Tuesday after losing 50.91 points in the previous session.
After a negative beginning, the index started rising as the session progressed and finished the session in the positive territory on bargain hunting, market operators said.
They said some institutional investors availed themselves of the opportunity to buy cheap shares.
Average share prices of textile, telecommunication, non-bank financial institution and bank advanced by 1.4 per cent, 0.9 per cent, 0.8 per cent and 0.2 per cent respectively.
EBL Securities in its daily market commentary said, ‘The core index witnessed selling pressure at the be ginning of the session but later opportunistic investors started taking fresh position regarding the undervalued stocks.’
Despite an increase in DSEX on Tuesday, the turnover on the bourse plunged to Tk 437.80 crore from Tk 476.67 crore in the previous trading session.
Tuesday’s turnover was the lowest after December 26 last year when it was Tk 388.24 crore.
Market operators said most of the investors remained on the sidelines to see the next move of the market.
Fragility of the country’s banking system amid rising bad loans, liquidity shortage and rising interest rate became a heavy drag on the investors’ mood, they said.
On February 14, finance minister AHM Mustafa Kamal at the annual banking conference of Agrani Bank said, ‘At present, the country’s banking and financial sectors are in the most vulnerable position.’
According to a media report, the government may withdraw its deposits from the financial sector to implement large projects including Padma Bridge and to meet expenses for LNG import.
Average share prices of food, miscellaneous and pharmaceutical sectors dropped by 2.9 per cent, 1.7 per cent and 0.2 per cent respectively.
Out of the 345 issues traded on the day, 233 advanced, 81 declined and 32 remained unchanged.
DSE blue-chip index DS30, however, shed 0.15 per cent, or 3.21 points, to close at 2,014.68 points.
Shariah index DSES added 0.77 per cent, or 9.91 points, to finish at 1,292.93 points.
BATBC led the turnover leaders with its shares worth Tk 29.49 crore changing hands on the day.
United Power Generation Company, BRAC Bank, Dutch-Bangla Bank, Square Pharmaceuticals, Monno Ceramics, Singer Bangladesh, Marico Bangladesh, Premier Bank and Reckitt Benckiser Bangladesh were the other turnover leaders.
Bangladesh Finance and Investment Company gained the most on the day with an 8.14-per cent increase in its share prices while Beach Hatchery was the worst loser, shedding 10 per cent.
Source: http://www.newagebd.net

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